How do I Calculate the revised annual depreciation expenses for each asset in 2018 and compare them to what the expenses would be if the changes were not made.
Date acquired Cost Accumulated depreciation end of 2017 Useful Life Residual Value
Warehouse 1/1/13 $200,000 $38,000 25 years $10,000
Building 1/1/12 $1,600,000 $225,000 40 years $100,000
For the warehouse: a decrease in the useful life to 20 years and a decrease in residual value to $6,000. For the building: an increase in the useful life to 50 years and a decrease in the residual value to $55,000.
